Beginning on November 2nd, fuel surcharges from both UPS & FedEx will be going up roughly three quarters of a percent. This follows surcharge increases from both carriers earlier this year in February.
So what does this mean for you, our faithful shipper? Small increases per package. Per Internet Retailer, the fuel surcharge index for UPS will be increasing from 4.50% to 5.25%. For FedEx, it’s similar: 3.50% to 4.25%.
For example, with a UPS Ground shipment costing $5.00, the fuel surcharge + shipping would total $5.23. After November 2nd, it would be $5.26. It may not seem like too much at first but when you ship large amounts—like what tends to happen during the holidays—it can add up quickly. Now’s the time to start planning how to absorb this increase, whether increasing a handling fee or slightly raising the price of your products.
As we’ve detailed before, however, communicating your shipping policy is good for you and for sales. If you decide to make any noticeable changes, let your customers know why. Open communication and transparency can go a long way to endearing yourself to your customers, especially around the holidays when stress is rampant.
Get out there shippers, and prepare for Holiday 2015!